ESMA has announced that global cryptocurrency companies, including major crypto exchanges, face significant legal consequences. If market participants want to remain in the market, they will have to register under the new Markets in Crypto Assets (MiCA) rules. Continuing to conduct core business in tax-free zones will be fraught, officials made clear.
The practices of large transnational crypto exchanges do not comply with MiCA rules and pose a threat to investors’ funds, officials said. They are creating unequal competitive conditions that put European crypto operators, whose business is entirely based in the European Union, at a disadvantage.
To mitigate risks, ESMA calls on National Competent Authorities (NCAs) in EU Member States to scrutinize the business models of global companies and introduce additional restrictions where necessary. The regulator emphasizes that the place of execution is crucial for the approval of MiCA authorization, as it affects the functioning of the European cryptoasset ecosystem. And it directly affects consumer protection.
In January, the European Securities and Markets Authority issued recommendations on methods for classifying digital currencies, which will help national authorities develop their own security standards and take measures to prevent circumvention of these standards.
Source: Bits
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